In a recent blog, I wrote about ways to save money–the ideas featured in an article by Jean Chatzy in the June 2008 Reader’s Digest. I agreed with the author’s analysis that sometimes small quick changes create a big result. Her article also mentions the ways slightly more difficult changes can have big results in a hurry. As Dr. Phil says, “Let’s Get Real, People”–saving money is no fun. Our society today is a “have it now”, “in the moment” generation. Delayed gratification is not what folks what–they want immediate gratification. Postponing the purchase of a nice dinner out versus putting that money away for your retirement is just not attractive. Ms. Chatzy summarizes Jason Zweig‘s thoughts on how to effectively make longer term changes in your financial life. He suggests that visualizing your goals should be a priority. Decide what you want to do and pick a date to do it.
Ask yourself how do you want to be living when your goal is accomplished? Set up a corner of your office, your fridge, any spot and personalize that goal (Mr. Zweig suggests if your goal is retiring in Hawaii — that you put Hawaiian music on your desktop, decorate your area with pineapples, put beach scene stickers on your retirement folder).
A second suggestion is to ask for help and create a team approach. Chatzy recommends the website stickK.com where you can post a goal and publish that goal to your friends and family, for them to monitor.
The last suggestion made is to break the goal down into manageable steps. If I thought about saving $50,000, that number seems impossible. If I decide that I want to have that much money in savings in 10 years, that means I have to save $5000 per year. To save $5000 per year (without factoring in interest at all), I have to put $416.67 a month into savings. To save $416.67 a month, I have to put $96 per week into savings. To save $96 a week, I have to save $13 a day. Now, how to save $13 a day? And that goal suddenly seems attainable if one doesn’t eat lunch out, cuts the gas budget or stops buying coffees/snacks. Some days, there might not be a $13 savings, but other days, I might be able to save more by implementing Ms. Chatzy’s small changes mentioned in the earlier blog.
